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NEXTDC cuts fiscal 2027 revenue guidance to 475–500 million Australian dollars

NEXTDC has quantified the financial impact of delayed power at its M3 Melbourne data centre, cutting fiscal 2027 net revenue guidance to 475–500 million Australian dollars. The company also lowered underlying earnings guidance and removed affected contracts from its estimates. It is pausing new project and land commitments while concentrating on already contracted capacity.

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Red-capped heavy cables in an open trench outside a data centre, with electrical equipment and an unfinished connection bay behind.

Revenue and earnings guidance are cut

Australian data centre operator NEXTDC cut fiscal 2027 net revenue guidance to 475–500 million Australian dollars from 615–640 million Australian dollars. Underlying earnings before interest, tax, depreciation and amortisation guidance fell to 245–265 million Australian dollars from 385–410 million Australian dollars. The October 21 revision followed delays to the power connection at M3 Melbourne.[1], [2]

The company removed affected M3 contracts from guidance because the timing of their contribution remained uncertain. The exclusion also covered contracts that were already being billed. Approximately 140 million Australian dollars was removed from each of the revenue and underlying earnings assumptions.[1]

The next grid increase is indicated for fiscal 2028

Distributor Jemena suspended connection works in September amid safety, site-access and local-consent issues. NEXTDC does not expect works to resume before February 2027. The next increase in grid supply is indicated for fiscal 2028, with timing still uncertain. Customer contractual rights and service credits remain relevant; credits could take underlying earnings below the revised range.[1]

New project and land commitments are paused

NEXTDC is pausing new project and land commitments to focus on contracted capacity over the next 12–18 months. Capital expenditure guidance is now 4.5–5 billion Australian dollars. That range includes capitalised interest, which the previous range excluded. Construction of contracted capacity continues subject to customers’ contractual rights.[1]

References

  1. News sourcew.mediaNEXTDC cuts revenue guidance after power delay↩1↩2↩3↩4
  2. News sourceABC NewsNEXTDC cuts forecasts after Melbourne power delays↩
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